IRS notches win in tea party cases

The IRS may have inadvertently figured out how to win its legal battles against aggrieved tea party groups: Give them what they wanted in the first place tax-exempt status.

That was a major reason a Republican-appointed federal judge on Thursday threw out two lawsuits brought by more than 40 conservative groups seeking remedies for being singled out in the tea party targeting scandal, a victory for the IRS.

Judge Reggie Walton of the U.S. District Court of the District of Columbia dismissed almost all counts brought against the tax-collecting agency in two cases, ruling that both were essentially moot now that the IRS granted the groups their tax-exempt status that had been held up for years.

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Walton, a President George W. Bush-appointee, also said individual IRS officials could not be fined in their individual capacity for allowing such treatment because it could hurt future tax enforcement.

The ruling, which the groups could appeal, has serious implications for tea party groups suing the IRS, suggesting they may never receive compensation for the long waits they endured for a ruling on their status.

The inspector general report that ignited the targeting controversy last year found that applications sat in limbo for as long as several years and that the groups were asked inappropriate questions about their donors, political affiliations and random things like social media posts.

Republicans said they were outraged at Waltons decision.

(POLITICO's polling center)

You get targeted and harassed for three years but, oh, because you finally get [tax-exempt status], the three years of harassment doesnt mean anything? asked Rep. Jim Jordan (R-Ohio), who heads a congressional subpanel investigating the controversy. I find that argument lacking tremendously in light of what these people went through.

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IRS notches win in tea party cases

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